Fundamentals of Information Systems

Study Notes

Information Systems (IS) consist of interrelated components aimed at collecting, manipulating, storing, and disseminating data to achieve specific objectives.
IS combines technology, people, and processes to manage information efficiently.

Enhance revenue generation and improve customer service while reducing operational costs.
Benefits include:
- Improved decision-making capabilities.
- Increased efficiency and productivity in processes.
- Enhanced customer service and satisfaction.
- Effective data management and security measures.
- Overall cost reduction across various operations.

Data: Raw, unprocessed facts without context.
Information: Processed, organized, and structured data that provides meaning and context.

Processes are sets of logically related tasks designed to achieve defined outcomes.
Knowledge encompasses awareness and understanding of information's usefulness to perform tasks.

Information is valuable when it aids decision-makers in meeting organizational goals.
Efficient and effective task performance is a hallmark of valuable information.

An IS includes essential elements for data handling:
- Input: Collection and capturing of raw data.
- Processing: Conversion of raw data into useful outputs.
- Output: Generation of meaningful information.

CBIS integrates hardware, software, databases, telecommunications, people, and procedures.
Infrastructure encompasses technology that manages data into actionable information.

Hardware: The physical computer equipment for data processing activities.
Software: Programs that dictate computer operation; includes:
- System software for basic operations.
- Application software for specific tasks.
Database: Organized collections of related data files.
Telecommunications and Networks: Enable electronic data transmission for communication.
Internet: The largest computer network facilitating information exchange globally.
Intranet: Internal networks for information sharing within an organization.
Extranet: External networks allowing limited access to authorized outsiders.

People are the most critical component of CBIS, driving operations and effectiveness.
Procedures define rules, strategies, and methods for effective utilization of the CBIS.

Common types of information systems include:
- Systems for electronic and mobile commerce.
- Transaction processing systems.
- Management information systems (MIS).
- Decision support systems (DSS).

E-commerce refers to the trading of products or services via computer networks, notably the Internet.
It incorporates technology such as mobile commerce, electronic funds transfer, and online transaction processing.